Oakland County cries foul after Detroit says water negotiations have 'run their course'

Oakland County officials on Monday challenged assertions made in bankruptcy court by Detroit lawyers who claimed negotiations over regionalizing the city's water department have "run their course."(File photo)

DETROIT, MI -- Oakland County officials on Monday challenged assertions made in bankruptcy court by Detroit lawyers who claimed negotiations over regionalizing the city's water department have "run their course."

Gerald Poisson, a deputy Oakland County executive, accused the city of withholding information needed to consider a water plan proposed by Detroit Emergency Manager Kevyn.

Orr -- who is trying to shed $18 billion in city debt, much of which is connected to the water department -- proposed turning control of the massive system over to a regional authority, giving suburban communities a say in its governance in exchange for $47 million a year to help Detroit's bankruptcy restructuring.

Oakland County Executive L. Brooks Patterson and Macomb County Executive Mark Hackel have criticized Orr's approach to negotiations, and Wayne County last week asked U.S. Bankruptcy Judge Steven Rhodes to appoint a mediator to facilitate talks.

City lawyers responded with a court filing claiming there's nothing left to negotiate.

"The City of Detroit has participated in good faith in negotiations for the past several months with Wayne County, Oakland County and Macomb County regarding the possibility of creating a regional water/sewer authority," they wrote. "Those negotiations have not proven successful, and the City believes that they have run their course. Nevertheless, if the Court believes that mediation is appropriate, the City will, of course, abide by the Court's order."

After negotiations with the county executives soured, Orr last month said he would explore alternative options, including private purchase or lease of the system, which provides water to Detroit and 127 other Michigan communities at steadily rising rates.

Poisson issued a Monday statement challenging Detroit's position.

“We disagree with Mr. Orr’s filing that says the city has negotiated in good faith with the
counties," he said. "It is our view that the city continually held back critical documents and barred meaningful access to DWSD officials. Oakland County doesn’t make billion-dollar decisions without first having the opportunity to perform comprehensive and professional due diligence.

“We remain open to the possibility of a reasonable solution to forming a regional water and sewer authority. But any resolution must protect all ratepayers; keep water and sewer revenues in the water and sewer system to pay for critical upkeep and rehabilitation; and cannot merely be a vehicle to divert funds from water and sewer customers to Detroit’s general fund so the city can meet its other obligations."

Oakland County has also claimed the original proposal would shift the cost of unpaid bills to responsible ratepayers.